Why New Clearing charges on FNO?


#1

Hi

I never ever show Clearing charges on FNO segment but from last few days i am noticing there is new ‘’ Clearing charges ‘’ in contract note.

Why we need to pay clearing charges.It was never mentioned before to us !

Can you plz explain about the new charge.

Thanks


#2

Yeah! What is this new Clearing charge in ZERODHA FNO contract notes? It was’nt there in last month’s contract note which I just saw inorder to compare. Why was’nt any notification sent regarding this hidden charge?


#3

As per the Zerodha Brokerage Calculator, the clearing charges are supposed to be 0.0002% of turnover on NSE F&O and Exchange Trnasaction Charges at 0.0019%.

But, since the first day of this new contract note, the clearing charges are charged higher than that in the contract notes.

I suspect there is a calculation error in the new contract note.


#4

I feel zerodha is finally feeling pricing pressure of 20 rs. brokerage and trying new hidden ways to charge clients which may be more than the brokerage it self

i paid 122 rs. of clearing charge in one day !

@nithin plz. explain it to everyone…Why it was not communicated to us that we are likely to pay new charge on trade.


#5

On writing to Zerodha.support, I go the following reply which doesnt explain why the clearing charges are higher than 0.0002% as mentioned on brokerage calculator.

"Clearing charge is the fee charged by the Clearing Member of NSCCL. A clearing member has the responsibility of clearing and settling all F&O trades done by the client on the exchange.

Previously, the clearing charges were shown along with transaction charges, however, from 1st April 2018, this charge will be displayed separately for better clarity.

Do note that this does not add an additional cost to you and is only a breakup of the existing charges.
"


#6

Explained here
https://support.zerodha.com/category/account-opening/charges-at-zerodha/articles/what-are-clearing-charges


#7

The clearing charge has been from the day 1 of the business. Until April this year, this was shown combined along with exchange transaction charges. We have started showing it separately to bring in more transparency.

Almost every broker uses a clearing member for his trades, and hence there will be clearing member charges additionally. We are the lowest on this again compared to everyone else out there. As we grew bigger, this cost for us has come down significantly. It is 0.0002% for futures and 0.002% on options premium, which as you’d realize is extremely small. Other brokers charge between 0.0002% to 0.001% and 0.002% to 0.01% respectively. Many of them towards higher end of this range.


#8

I find the clearing charges in my contract notes at 0.0002001% every day since the introduction of the new contract note.

So, I dont think it is a rounding error but it seems to be a small calculation error in the new contract notes.

Also, the exchange transaction charges are correct at 0.0019% and exact for all days since then. No error even at the second decimal point there.

I have raised a support ticket but this is not being addressed since over a week.

The issue is not about me overpaying a few rupees in clearing charges. The issue is of books of accounts not matching.

I am looking forward to some clarity on this. :expressionless:


#9

Thanks @nithin for clarification and not adding any new charges on us.

Now i can die peacefully .


#10

Ok then it’s good. Transparency is good!